Silver Prices Spike 20% in August Amid US Treasury Shift

Silver prices have surged nearly 20% in August, touching $70 per ounce after the US Treasury's decision to double long-bond buyback operations. This move has weakened the dollar and lowered Treasury yields, making silver more affordable for global buyers. The metal is also seeing consistent demand from industries like solar energy, electric vehicle manufacturing, and AI infrastructure.

The rally marks the strongest performance of silver since mid-June 2026, with futures on India's Multi Commodity Exchange (MCX) rising to approximately Rs 2,44,328 per kilogram. The US Treasury's shift in fiscal policy has provided a boost to silver mining equities, with several major producers recording double-digit gains during the month.

However, investors should note that a 20% jump in a single month is a rapid move, and silver is historically known for sharper price swings compared to gold. The metal's recent price climb brings risks of increased volatility, and market participants are watching to see if it can maintain the $70 per ounce mark.

The current rally may face pressure if economic reports suggest that interest rates will stay higher for longer than expected. Investors tracking this space should observe how the price stabilizes in the coming weeks, as rapid rallies often require a period of consolidation before establishing a new trend.